Foreign exchange markets and global currency movements.
Coverage of currency markets including major pairs, central bank actions, interest-rate differentials, and geopolitical influences. This section highlights trends in FX markets that impact global trade, inflation, and cross-asset correlations.
743 total articles
Sterling bounced off earlier losses to trade just above $1.32 on Friday, remaining close to a two-month low and on course for a weekly fall exceeding 1% as robust May retail sales were offset by rising political uncertainty and signs of deteriorating public finances in the UK. EUR/USD was marginally firmer.
European government bond yields ticked upward on Friday after a volatile week that included the announcement of a U.S.-Iran agreement, later volatility from U.S. interest-rate signals, and renewed doubts about implementing the accord following a U.S. official's cancelled trip. Crude oil gained nearly 1%, while the benchmark German 10-year Bund rose…
The Office for National Statistics reported a May budget deficit of £23.3 billion, 30% higher than a year earlier and above economists' median expectations. Earlier forecasts for the 2026/27 fiscal year envisaged a narrower deficit, but a weaker growth outlook and rising borrowing costs have altered the picture. Recent gilt sales showed the highest…
Most Asian currencies traded in narrow bands as the U.S. dollar remained close to a 13-month high following a Federal Reserve policy shift that raised the odds of further U.S. rate increases. The Japanese yen stayed under strain after touching multi-decade lows, while attention also focused on suspended Geneva talks involving the U.S. and Iran and …
The Canadian dollar weakened to its weakest level in 14 months against the U.S. dollar after Federal Reserve comments pushed investors to price in more aggressive U.S. rate action. The currency traded near 1.4135 per U.S. dollar, with the yield gap between two-year U.S. and Canadian government bonds widening to its largest since May 2025. Falling o…
Sterling weakened to its lowest level since early April, with GBP/USD slipping below $1.33 as markets digested a cautious Bank of England and a more hawkish Federal Reserve. The dollar’s strength, supported by shifts in Fed guidance and higher US yields, outweighed improved risk appetite from lower oil prices tied to progress on a US-Iran peace agr…
DTCC data show a cluster of substantial currency option expiries scheduled for the New York cut on Thursday, led by heavy euro contracts at multiple strikes. Significant option volumes are also recorded in yen, Australian dollar, pound and Canadian dollar pairs, as well as several emerging market crosses.
The U.S. dollar strengthened on Thursday after a sequence of developments around the Federal Reserve's latest policy decision led investors to price in a greater chance of additional U.S. rate increases this year. Market participants cited a more hawkish tone in the FOMC statement and projections, a notably less critical reaction from President Don…
Citi recommends buying USD/NOK after a Federal Reserve meeting that delivered a hawkish tone and as Brent crude has retreated below $80 per barrel. The bank’s EUReka model shows three of four fundamental signals favoring the dollar, and Citi believes the Norwegian krone could lose recent gains tied to higher oil prices.
China's removal of tariffs on imports from 53 African countries, combined with an almost 18% increase in China-Africa trade last year and new payment links, is encouraging greater use of the Chinese yuan in cross-border settlements. Banks and exporters report rising yuan transactions driven by trade flows and new infrastructure like CIPS, but relia…
Most Asian currencies recovered modestly on Thursday following steep declines a day earlier, as the U.S. dollar remained near a two-month high after the Federal Reserve indicated it could still raise interest rates later this year. Softer oil prices, following an interim peace agreement between the U.S. and Iran that extended a ceasefire, provided …
Sterling traded just above $1.34 and the euro held near $1.16 as the U.S. dollar firmed broadly in advance of the Federal Open Market Committee announcement under new Chair Kevin Warsh. Brent crude remained below $80 a barrel after news of a U.S.-Iran peace deal, a development that has introduced a dovish tilt to energy markets even as markets awai…
German Chancellor said at the G7 summit that China’s currency may be undervalued by roughly 20% to 30% and should be raised for discussion among world leaders. The comment coincided with a People’s Bank of China announcement to strengthen control over short-term money markets by linking overnight borrowing costs more closely to its seven-day revers…
Citi says the euro-sterling rate is pressing the lower edge of its trading band near 0.86 even though recent indicators suggested the pair should be stronger. The bank attributes the pound's resilience to foreign purchases of U.K. government bonds and notes that its prior bullish stance on EUR/GBP has weakened amid conflicting flow and fundamental …
European government bond yields fell for a fifth straight session as markets absorbed further specifics of the U.S.-Iran peace arrangement. Reports that the U.S. will waive sanctions on Iranian crude and the expected normalization of flows through the Strait of Hormuz have pressured oil prices and reduced energy-driven inflation concerns, encouragi…
Most Asian currencies held near recent levels as the U.S. dollar steadied and market participants awaited details of an interim U.S.-Iran agreement and the Federal Reserve’s policy decision at its first meeting chaired by Kevin Warsh. The U.S. Dollar Index was largely flat after several sessions of declines, while regional currency moves were gener…
Significant option positions across a range of major currency pairs are scheduled to expire Wednesday at the New York cut, with particularly large expiries in USD/JPY, EUR/USD, USD/MXN, AUD/USD, USD/CNY and USD/BRL. Several complementary multi-billion-euro and multi-billion-dollar strikes are also scheduled for mid-June dates, notably June 18 and J…
Two people familiar with the matter told Reuters that Binance's application for a licence under the EU's new MiCA rules, filed with Greece's Hellenic Capital Market Commission (HCMC), is expected to be rejected. The decision would mean Binance could lose the right to offer services to clients across the European Union once the June deadline passes …
Sterling traded just below $1.34 and the euro hovered around $1.16 as the dollar mounted a broad recovery even while oil prices declined after a preliminary US-Iran ceasefire agreement. Market participants are shifting attention from energy moves back to central bank signals ahead of this week’s US Federal Reserve meeting and the Bank of England’s …
Citi expects the Federal Reserve’s initial meeting under Chair Kevin Warsh to produce policy statement tweaks largely priced into markets, limiting the likelihood of a significant dollar breakout. The bank flags the post-meeting press conference as the key variable - and says a neutral or ambiguous tone from Warsh should cap any abrupt U.S. dollar …
European government bond markets extended a rally for a second day after news of a preliminary U.S.-Iran ceasefire reduced immediate inflation concerns. Germany's 10-year yield and the policy-sensitive two-year note both fell to two-week lows, while UK gilt yields reversed earlier weakness. Market participants are now focused on central bank signal…
Most Asian currencies and the U.S. dollar traded with little change as investors awaited specifics on a preliminary U.S.-Iran agreement and a week of central bank decisions. The Bank of Japan raised its short-term policy rate by 25 basis points to 1.0% in a 7-1 vote, while markets parsed officials' comments for clues on the path of future tightenin…
The Canadian dollar strengthened modestly against the U.S. dollar on Monday after news of a preliminary peace agreement between the United States and Iran lifted investor risk appetite. The currency traded around 1.3980 per U.S. dollar, supported by rallying global stocks and bonds and a drop in oil prices, though gains were limited ahead of the Fe…
Bank of America strategists advise buying a 3-month AUD/CHF digital call option targeting 0.5800. The recommendation rests on the Swiss franc's status as a funding currency and an improved outlook for the Australian dollar following tightening rate differentials and progress toward reopening the Strait of Hormuz after recent US-Iran tensions.
TD Securities flagged a higher likelihood of delayed Japanese government intervention in the currency market as the dollar-yen rate approaches 165. The firm said intervention risks may intensify if USD/JPY climbs toward 162 after an anticipated quarter-point BOJ rate rise. Tokyo has already deployed substantial reserves to support the yen, while op…
